appeared to have social security and license plate numbers. apparently from the nassau county police department out on long island. an investigation is underway, and they are already reviewing procedures for disposing of sensitive documents. that is it for tonight's "the willis report." thank you for being here. have a great night. ♪ lou: good evening, everybody. both democrats and republicans appear tonight to be determined to abandon any meaningful commitment to intellectual integrity and their respective parties in debating and discussing solutions to the fiscal cliff. president obama organizing a campaign to persuade voters that his plans for higher taxes on the wealthy are the right path forward. leading republicans creating consternation within their own party does they reversed themselves from taxes and seemingly the president's ideas

of increases, a growing number on the right rejecting their no new taxes pledges and instead are now claiming the grover norquist is the real problem in washington d.c. fox digital politics center is here with us tonight as is the daily caller stalker carlson. egyptian leader declaring new powers for himself, claiming he won't be just another dictator. just a week ago praised by the obama administration for brokering a ceasefire in gaza, and now the white house is silent on the more -- coupe. middle east expert professor hoover institute senior fellow "wall street journal" as columnist among our guests her tonight. we begin ith the president's broad based strategy to conduct our right class warfare aainst the republican party on the issue of taxes and the fiscal cliff. the white house today released a report from the ouncil of economic advisers. that report claims that if

republican lawmakers don't accept the president's fiscal proposals they would be responsible for destroying christmas for the nation's retail sector. the national retail federation is forecasting that holiday sales will grow. if congress does not act on the president's plan t extend tax cuts for the middle-class and jobs in our ecoomy at the most important time of the year for retail stores. as the president uses similar scare tactics to bully republicans into a deal press secretary jay carney today made clear where the president himself simply refuses to compromise. >> there are issues that need to be resolved that we have been very clear about, both the presence interest and willingness to compromise, but also his clear insistee that

he will not sign an extension of bush era tax cuts for the top 2% lou: a congressional budget office analysis shows that allowing the bush tax cuts to expire on upper income americans would generate approximately $82 billion a year or enough to run the government for eight and a half days. eight and a half days. meanwhile, the list of republicans who are reversing themselves on their anti-tax pledges is growing. former gang f six member publicly broke ranks last week after fellow gang member defected from norquist in july when he agreed to a tax increases in exchange for a grand bargain on the deficit. the other republicaa gang member, senator mike ray powell reportedly indicated earlier that he is open to a range of possible tax rates.

now senate is lindsay gramm, john mccain, bob barker along with house majority leader eric cantor and congressman peter king are rebuking the norquist anti-tax pledge, a new gang of six saying in recent days they would break that pledge to look for new ways to generate revenue republican congressman peter king said bluntly, he is not ruling anything out. >> i agree entirely. a pledge to sign 20 years ago, 18 years ago. i think everything should be on the table. lou: two of the senator's not only reversing themselves on raising taxes but also rethinking their opposition to a susan rice secretary of state apartment. senators gramm and mccain both revising their political positis in a bit -- at a breathtaking pace. joining a summer we are calling the republican reset, the fiscal cliff, of course, and the coup in egypt, the president

seemingly in search of a campgn. after a long holiday weekend, does anyone remember been gauzy? to find out, we are joined by of and the daily column founder and editor cockies contributor. thank you. let's start with republican party. is that o strong a word? in disarray. >> i think disarray is a little strong right now. we will see. it is one thing to talk about these issues so far in advance. in terms of the norquist tax pledge and certainly the susan rice, these are noises that you made to sound concliatory after an election, and we think back to 2009. the republicans sounded very conciliatory in the days after president obama's reelection when hewas holding a high approval rating, but by april or may of his first year that that had melted away.

so right now is happy talk from the republicans. we will see whether that materializes into votes. lou: such happy talk, why aren't there mre smiling faces in the republican party? >> pretty unhappy talk from what i can tell, and to this point pretty frivolous. you see members of the united states senate demand is not even their negotiations, but taking a timeout to beat up on grover norquist to is some on elected activists type who was not a player in this and does not have a seat at the negotiating table, was not elected. what does he have to do with any of this? is seems to me this is the opportunity for the republicans in the house, but also to some extent in the senate to explain what they want to know what kind of entitlement cuts that will demand. instead they're beating a boy norquist. lou: we also received this word in. susan rice, united nations u.s. ambassador to the united nations has requested three meetings --

meetings with three senators tomorrow. senator kelly, john mccain, and lindsay gramm. the ambassador wishes to speak with them. i am sure she will -- by snc will be accommodated. i am ondering how much mcconnell feels right about now. >> well, interesting thing for the demonstration at this point, the president is sort of trap now in nominating ambassador rice as secretary of state. waiting for the moment that hillary clinton, waiting for her to give the word, but the president, having stood so strong in her defense, strongly in her defense around what she said that up and gauzy and the video that she said was the cause of the attack that killed those americans that now they are boxed in. he prtty well has to stick with her. this is are going around to say in private what she was in

public which, based on the testimony from the general and others is, it was a calculation that it was a decision that was made at the white house that it would be bad business to be out saying that it was a terrorist. lou: what is your reaction, tucker? >> what a waste of time. remarkable. i mean it. as a liticalcalculation. the president just was reelection. a tough campaign. he wins by a convincing margin. he is at the apogee of its power. and what does he choose to do? he spends it on getting susan rice a job running the state department. this is pretty small potatoes by comparison to a lot of other things going on right now, chief among them the fiscal clef. there are a lot of other questions hanging in the air, and he is doing the bidding of his old friend, susan rice. we're always been their capital. lou: but certainly not something that we are unacquainted with. president george w. bush

famously spending is on a private security account which was utterly briliant. sst is not the first time we have seen second term presidents overtaken by mystifying forces. and going to the fiscal cliff right now. the plan. we just is rated here. we have senators all over the place. as best we can tell and as you correctly pointed out, very little to do ith this. for the life of me i can't find the intellectual leader of the republica party and all or even for that matter the intellectual chaplain of the party. >> the question is directed at me. really enough it is probably in the senate. i would say it is guys like ron johnson, a freshman from wisconsin, never been in politics at all before thislast -- the 2010 election. jeff sessions of alabama. a couple of others who are

emerging intellectual leaders. i'm not sure who the counterparts are. that says a lot. lou: to you have some nominees? >> michael lee, the senator from utah has shown some real raider on these issues. a real favorite of the republican base, and he puts it forward in a way that is pretty sensible. ted crews, the new freshman republican from texas will do big things when he gets to town. he will be a lodestar for that group of conservative republicans in the senate. lou: you said star cannot load. >> lodestar. a tracking point, mr. dobbs. lou: thank you very much. much more on the fiscal cliff and the future of the republican party with the "a-team" coming up next. obamacare, the law of the land. not so fast. a lot of governors are saying, it's your lot. you enforce it. what it all means in tonight's

"chalk talk". the billionaire verses the tax master. warren buffett takes on grover norquist. who is right? former cbo director douglas cosecant joins us next. okay, that looks great...

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♪ lou: well, we are going to be assessing what is happening with the fiscal cliff, negotiations, tas tomorrow waste of time between the principal so-called in washington d.c. talking with former congressional budget office director douglas hopes he can hear in moments. first the "moneyline". lori ruined the day on wall street. concerns about the deep discounts being offered by retailers on black friday. worries about the fiscal cliff, greece of coining for a market that pretty much went nowhere today. the dow jones industrials down 42. as into down treatment nasdaq rose ten. the sixth day in a row in which the nasdaq has gained. light trading on the big board.

concerns about increases in taxes on dividends for the high-yield dividend stocks of late. today at&t and verizon down, both with dividend yields of just about 5%. most retailers lower on the day despite good news on the holiday shopping weekend. target and walmart among the worst -- losers. investors celebrating hat some are insisting on calling cyber monday. in the treasury market the yield on the treasury's ten year slipping slightly lower to 1% early this evening. the international monetary fund announcing it reached a deal with trees to cut its 124% of gdp by 2020. that is a big deal. with to some 30 but believe who -- with just 35 days you would think that lawmakers will be

focused on solving the problems, but grover norquist has become the subject of all of the debate the washington post headline today screaming grover norquist has more to lose than republican leaders do. the "washington post" saying that, of course. meanwhile, a prominent republicans saying they may abandon their pledges altogether >> i am not obligated on the pledge. the only thing i'm honoring is the oath that i take when i serve when i am sworn in. >> the pledge is signed. it is with of congress. >> $16 trillion in debt. the only place we should be making to each other is to avoid becoming grece. i will violate the pledge, long story short for the good of the country. lou: joining us now, the former congressional budget office director. president of the american action

forum. great to have you with this. what do you make of those folks? they're going after grover, throwing their pledges out. i love the senator. the only thing he will honor -- somebody has to tell the man had that sounds. >> i think honestly this is politics over economic common-sense. we know a couple of things. number one, we already have tax increases coming. health care reform, affordable care act. so they are coming. a better idea in this economy, and everyone should know that. number three,the president who claims he must have a balanced approach only talks about raising taxes. this to be asking a question, what spending cuts are you offering along with this request for tax increases? and let's see a real plan. that is the discussion we need to have not negotiating on taxes lou: and to his credit, the speaker has been -- well,he has

not been heard from. it seems somehow the preferred course to watching senators gramm and mccain and chambliss, for crying out loud, out there making all sorts of noises. lou: in that -- the media does love to cover them because in the end -- lou: i'm not complaining. but in the end, what is really growing -- g going on, the white house is going to have to getto de. that is going very slowly. little progress, but those are the players that matter. the noise from the side shows is ju the only thing to cover at the moment. >> let me ask you, at any reason and this possibility that the president is actually insisting on tax cuts on the wealthy even though he understands. lou: he is talking about eight

and a half days of money with which to run this government's. is he -- do you think maybe there is a possibility that this is simply, if you will, and opportunity for him so then bring forward entitlements and say i just stuck it to the rich, now were going after the real money. >> i think the president doe know that he needs to get the taxes as part of the politics. i think they also understand that if there is in real progress made on the debt and the entitlement spending is the source of that debt going forward, that rating agencies we will downgrade the u.s. by august of next year. they have a window in the spring of 2013 where they need to get something serious done. i think that is a place to have this larger discussion. i think the problem with dragging it into te fiscal of negotiations is, you raise the possibility that, you know, you have a train wreck. we go over the cliff and an upper and recession.

lou: the real concns here, the market is not going to wait until next summer to react. as a matter of fact, if these markets of reacting for another 30 days without demonstration, i will follow your word. it will be a miracle. the idea that whenever this president is suggesting in terms of entitlements would not be put ford is a sign to some of those anxious investors in these markets from debt markets to equity markets for foreign exchange markets. that's asking a lot. >> well, i think there are two things markets should fear. they should you're going over the fiscal cliff, and they do. when you see the dividend taxes go from 15 to 45, that is bad news for market participants, and they're going to react poor to that. not having these sharp tax increases and spending cuts, getting to that end of the year cliff is very important for the

markets. in doing so, you have to make a commitment to taking on the second problem, the large debt. that is a dance that the president and the congressional leaders are going to have to figure out how do. we need both problems fixed. if you try to lead to much on the debt in a lame-duck, afraid that you don't get a deal and go to the fiscal cliff. if you do too much debt reduction, big tax increases, you know, we have a recession. this is economically pretty straigforward, but politically very complicated. lou: the results profound looking at as much as and a half%, some say a reduction in gdp if we pursue this matter course that we are on. we have a president who insists that taxes on the wealthy will be a solution and if we have republican leaders who are saying that tey can join in an increase in taxes without talking about the spending problem. somehow they forgot about the spenng problem. lou: you have tofocus on the

spending problem. ain, we have prominent people like warren buffett writing op-eds and sang the solution is we need o attacks and do it right away. in fact, those proposals of no problems. less than a week of running the government. in just a couple of days then make the tax code complicated, and they don't solve the fiscal cliff. that is the kind of leaders we have at the moment. lou: terrifying as a word that would come to mind. i don't want to upset anybody. good to have you with us. >> thank you. lou: and a big hollywood weekend, the best thanksgiving weekend. twilight breaking don part two, top spot again. $64 million. for some entertainment. sky fall continues to soar. lincoln's third place, third weekend out, 34 million. in all ticket sales totaling 290 million, breaking the previous thanksgiving record of

2,703,000,000 back in 2009. up next, a cease-fire agreement between israel and hamas is holding up. then he brokered the agreement crabbing startling new power -- powers and plans of the same time he is not another dictator. we're joined. and the other timid consequences of obamacare. half the states taking a pass in the president's plan for exchanges. is obamacare an even bigger bundle them we thought? we take a look in tonight's "chalk talk" the next.

♪ lou: now we have learned there are 16 states that refuse to set up so-called insurance exchanges. sixteen of them. obamacare calls for the creation

of virtual marketplace i where consumers can shop for health coverage. this 16 outright refusal to mostly from states with republican governors to be another six states have chosen to go into a partnership with the federal government. seventeen states in the district of columbia are going along and implementing exchanges themselves. there are 11 states, 16, 11 -- we will put them out there as undecided, but nine of these we should point out, nne of these have republican governors. a state with an exchange means that 2014, the department of health and human services will do it all for them. why this rebellion? the first reason is cost. this is the big unknown in obamacare. governors are afraid they will get stuck with the cost of setting a been running these exchanges. the cost from ten to 100 million

per year in each state. in fact among wisconsin governor scott walker is opting out because he says operating the exchange we will cost up to 60 million for wisconsin each year and federal funding is only guaranteed for one year. if we assume the exchange's cost about $50 million, on average for each state in the union, a conservative estimate, by the way, that would still amounto the into a half billion dollars. two and a half billion. and you say, well, where is the federal government and all of this? well, they are there with all of their support that they can possibly bring. health and human services has a billion dollar fund to ma $1 billion. ese governors, republican and democrat are no dummies. they know that leaves a little problem. one and a half billion dollars packages in the operation of the exchanges themselves.

into in terms of what is driving this. oklahoma governor says it is not just setting an exchange. it is setting a big bureaucracy. she says, these programs will be state-run in name only. control is the second reason. then next regulations, regulations so far. this is incredible. obamacare has now, right now 13,000 pages of regulations. 13,000, and there are, folks, a lot more pages to come. the governor of ohio says he does not want to employment and exchange that would cost as much as 63 million for his state. that is the latest estimate. the states have received so little information or clarity from the obama administration on how this is all going to work.

i guess the governor has not read the 13,000 pages. a lot of clues, i understand and there. it's not just a matter of website. it's about bureaucracies, the ancy that is neededsent overseas andxcnge and the state's to ensure that they are complying with those lovely federal reglations. that could be the state's business or it could be federal. we don't know. apparently neither does the federal government. consumers we wilneed face-to-face held to navigate of this. the enrollment process, the state of california loan. here we go. california alone as ties they will need 25,000 reps' speaking as many as 13 languages to run their insurance exchange. think about that. furthermore, there is no one size fits all exchange. different states with different insurance markets in different eligibility requirements for medicaid. obamacare just keeps getting

better. and we did not even get into the ws 20 different taxes that will cost taxpayers about $700 billion over just the next decade. obamacare. so far so good. the fiscal cliff negotiations under wa. business leaders go to washington meeting republican and democratic house leaders. but is what is good for business really good for the country? the "a-team" next. the government tracking terrorists, criminals, and students. a texas school district wants to attract their students. big brother not a big hit with the students. protests are up in egypt over president more seize power grab. will the united states it by quietly as he makes his move to become their leader? and is sure real law next? acclaims dollar mile east ♪

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deasy starting now, code as chair of the working group on islamism and the international louvre institution, "wall street journal" contributor. good to have you with this let's start with some woman with an a day. the president of egypt, the clerisy as new powers within a

day of that cease-fire taking home. breathtaking arrogance how should we perceive this? >> this stunning display of flexibility on wednesday he brokers a deal between israel and hamas. he is the darling of the international community. he is praised by president obama a day later he takes emergency powers and suspends the constitutional life of the country. tells you that he used the credit see earned abroad for domestic at home. lou: domestic repression, but nonetheless is it not fully coordinated and supported by the muslim brotherhood, of which she is a major part? >> whether he is a member of the muslim brotherhood are not. of course in many ways.

the ruler of egypt, a supreme god of the muslim brotherhood. nothing about him that entitles him to the presidency. he was just demand that the muslim brotherhood put up for election. lou: in the white house today, and i want to get your assessment, the white house press spokesman said, we are concerned about dictatorial power. we are concerned about it. we raised those concerns. he also said, the president has not spoken with him since the cease-fire or since he acquired those new powers. what is your perception of what the white house is doing in this response? >> well, come to say i'm concerned about what he is doing, we have a kind of a prominent positionn egyptian politics. we have sway over egypt, money that we invested. let's face it. the egyptians have alalwa played a very sewdgame. they did it under mubarak and

not doing it. it is the equivent of two big to fail. a big country, very important country. bacon's defense at any time. we keep hoping, but thy don't. and i think there is not really my said the whitehouse can do. lou: the net is states is so gullible or we are so acquiescent and actually feel well served by their pursuit of their interest irrespective of the time to time annoyances like acquiring dictatorial powers on the part f the assembled. >> well, ithink there is -- there has beena different influence inhe region. if you take a look at the anti-american access, when you take a look at the hezbollah and hamas, these are very powerful people. they're really playing for keeps they know what they're doing. we are into the region, out of the region. secretary clinton rushed to the scene when she rushed to the middle east after the war broke out between hamas and israel.

in the far east. we visited the far east. the president was visiting pagodas in the far east. lou: not going near india or china. you mentioned a moss, ron and syria along with egypt in that, if you will, axes with in the least. syria itself, the implications for it as a result of what we are witnessing and the obvious victory for iran in brokering this deal along with more see, whether he is the ultimate act or whether he is, if you will, acting in the interest of others >> this war in the region is really a proxy war between iran and israel. this is eally extending to

hezbolla and moss. these rockets that were fired iranian rockets supplied by a iranians. lou: most of them by israel. >> absolutely. but these were -- derived from the power. there is no doubt about that. >> in the bunker, these are good days. these are good days. no one came to the rescue. indeed, the talks in egypt in the tumult of the war between israel and the moss. no doubt about it. lou: thank you for being here. >> thank you. lou: next russia's leading newspaper on president obama and those who voted for him not flattering. noted obama backer seemingly working hard to prove the point. that is next. it up tomorrow, abc nws white

house correspondent with his new book. we will be talking about that. former federal prosecutor and former u.s. ambassador to the united nations among our guests. coming right up, the "a-team" on the reublican rebellion against what. who is this guy? grover norquist -- grover norquist.

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with snapshot, i knew what i could save before i switched to progressive. the better i drive, the more i save. i wish our company had something this cool. you're not filming this, are you? aw! camera shy. snapshot from progressiv test-drive snapshot before you switch. visit progressive.com today. ♪ lou: new york city police commissioner ray kelly tends to stay out of politics of any sort, so surprising when he enters the fray and this time at the expense of the president. a determined advocate of gun control quoted in today's new york daily news saying this. maybe this is the most affected by guns in chicago. the president's hometown. barely a peep out of hand. we have noted that fact on this broadcast a number of times. to be clear, there is every reason for the president to speak out about his hometown.

462 people have been killed in chicago so far this year. almost 20 percent increase over last year in a city with some of the toughest gun-control laws in the nation. today alone a man killed, another critically injured at the funeral of a known gang member who was gunned down just last week. well, the haking group anonymous says it is responsible for taking down the website at the texas school district now requiring students to wear a microchip id card to track their every move. officials in san antonio north side independent school districts say they are testing the controversy a program to raise attendance and of course, secure mo state funding. some public high-school students are refusing to wear their pledges, claiming the state is violating their right to privacy . well, the cmmunist russian news outlet labeling president obama a communist in a scathing op-ed. an editor writes, the president is a communist without queson.

reelected to a second term by an elder society. the editorial goes on to say that the president's personality mesmerizes those who cannot go beyond their ignorance. unfortunately oscar-winning actor jimmy foxx seem determined to demonstrate that he had research part of the article very well. listen to how fox describe the president last night during the soul train awards. >> to god and our lord and savior, barack obama. barack obama. lou: i wonder how he reconciles the communists a keyless ways and jamie foxx characterization or do you suppose they bother? up next with morgan russell republicans indicating a willingness to break from broker norquist anti-tax pledge. what does that mean for the

future of the republican party? the "a-team" with the answers. we're joined next.

♪ lou: the "a-team" republican pollster, campaign strategist, wall street journal opinion page editor, democratic strategist. good to have you here. let's start with the senators, these folks, on the republican side, the ideaof higher taes saying grover norquist and their -- is their problem. >> did not force their hand. many of them, including senator sax said that like a great deal.

the 5-foot blown up version of the pledge he signed behind him at campaign events, raised money on it, ostensibly won his primary because of. every time one of these guys as i can no longer committed to a pledge that to 20 years ago, i am so grateful i am not married to them. what do you mean? and just so we all understand, when you sign that pledg you cited for the duration of your service in that office. >> basically interfering with the marriage. it did sound lousy, but at the same time, there is something pier i'll about it, the fact that there is this pledge, that this is the issue and that grover norquist is suddenly the enemy of these fine folks. >> i am also glad that i am not married. but going to the tax pledge, it is a little bit complicated. he makes the point that no republican has voted for a tax increase and congress and something like 20 years. that is true, except for we are

going to get tax increase on january 1st congress does nothing. pursuant to push tax cuts in 2001 and 2003 which many reblicans voted for. the law in 2010. lou: worrying about the niceties and the details. we're looking at a fiscal clef. but some senators running around. sitting there trying to, you know, it seems to me, rollover for the president. >> perhaps. if they don't roll over, if they stand firm and there is no agreement taxes go up anywa lou: with that we come back. we'll be right back.

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lou: we're back with the a-team, the fiscal cliff, grover norquist. will the president step up and deal with the issue of

entitlement. >> i believe he will, he must, and he has, to but with regard to norquist. only thing we're desperate about a man about to lose his power is a man about to lose his relevant, i think that publicans, have started to say, wait, we're facing a crisis, 20 year pledge. it is time to put that behind us. us. neil: why don't the -- lou: judg why don't the democras care ether he is elected or not? >> the republicans who took this pled were elected taking the pledge. >> they bragged about it you know, 1994, could not have happened without grover norquist. and always about tern that theo

personalty not policy, let's talk about the issue, is medicare going bankrupt or not, senator dirk durban saying we have to tackle medicare or it will be bankrupt in 12 years. let's talk about that instead of norquist, he is one of the most selfless guys in politics. you know this is a reagannesque parts of the soul of the republican party, if some want to break their own pledge to voters not to raise taxes they can do that and be account able. lou: there is not a reagan nesque figure in the republican party right now who is the intellectual leader right now?

what group of the republican party? the governors? >> kelly ann is right, governors, there are 38 republican governors, there will be after the first of the year. we'll see who emerges. lou: striking you are not hearing speaker boehner or mitch mcconnell. >> when have congressional leaders been major lead irs of their party,hey are wheel ordealers. >> politics abhor a vacuum. lou: governors are nation -- >> but, several are chief executives. i want to stick up for mcconnell and boehner, they are playing hand theying dealt, on the 1600 pennsylvania avenue, with a huge mandate to raise taxes. >> if you look at personalties of three leading governors,

chris christie, markio rio, and bobbyen jen gend el they arg personallies. lou: i want to, go back to the intellectual leadership amongst those governors, the names of people you think are those leaders. >> newly elected governor of indiana mike pence. he will not set up the health care exchange, and susana martinez. >> and scott walker of wisconsin. >> he has been eleed twice in a state that mitt romney lost by 7 points. lou: you had to leave it with governor romney. >> their bench is really thin that is why joe biden is the vice president. come on, let's leave